Arizona Negligent Hiring HB 2311

July 11th, 2018 | Sterling

On April 5, 2018, Arizona Governor Doug Ducey signed HB 2311, which provides protections for employers that hire, or contract with independent contractors, who are ex-offenders. The new law will take effect on August 3, 2018.  Please see below for a summary of this new law:

• An employer is not liable in a negligent hiring action for hiring an employee or contracting with an independent contractor who has previously been convicted of a criminal offense.
• In a negligent hiring action that is filed against an employer for the acts of an employee or independent contractor, the fact that the employee or independent contractor was previously convicted of a criminal offense before the employee’s employment or independent contractor’s obligation began with the employer may not be introduced into evidence.
• The law does not prevent an existing  claim against an employer or independent contractor for failing to provide adequate supervision of an employee or independent contractor.  An exception exists  if an employee/contractor has previously been convicted of a criminal offense.  This information may be introduced into evidence if the employer knew of the conviction or was grossly negligent in not knowing about the conviction and the conviction was directly related to the nature of the employee’s or independent contractor’s work and the conduct that gave rise to the alleged injury that is the basis for the claim.
• An employer is not protected by this new law in the following situations:

1. The misuse of monies or property of a person other than the employer by an employee or independent contractor if, on the date that the employee was hired or the independent contractor entered into a contract with the employer, the employee or independent contractor had previously been convicted of an offense that includes fraud or the misuse of monies or property as an element of the offense, and it was foreseeable that the position the employee was hired or which the independent contractor entered into a contract with the employer would involve discharging a fiduciary responsibility in the management of monies or property.
2. The misappropriation of money by an employee or independent contractor if the person was hired or the independent contractor entered into a contract with the employer as an attorney and on the date that the emplo8yee was hired or the independent contractor entered into a contract with the employer, the employee or independent contractor had previously been convicted of an offense that includes fraud of the misuse of monies or property as an element of the offense.
3. A violent offense or the improper use of excessive force by an employee or independent contractor if the employee was hired or the independent contractor entered into a contract with the employer as a law enforcement officer or security guard.

• The law defines a “Criminal Offense” or “Offense” as any criminal offense except violent and sexual offenses. 
• The law defines “Employer” as an employer, general contractor, premise owner or other third party

The full text of the law can be found here.

This and other important legislative updates can be found on the Sterling website, https://www.sterlingcheck.com/resources/compliance-updates/

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